Oil prices are down for a second consecutive session
Oil prices are down for a second consecutive session, with the NYMEX benchmark future off by 1% at $45.62. Prices has fallen by 3% on Friday and are down by a cumulative 7.4% from the one-month high logged last Tuesday at $49.20. The focus is squarely on Wednesday's Opec meeting in Vienna. Markets are fretting that the group won't be able to deliver a credible supply cut, which would have to be of a magnitude of 1 M barrels per day to reach the Algiers Accord target for 32.5 M barrels per day in total production. Iraq and Iran remain in dispute about how much, if at all, they will participate, while participation of major non-cartel producers, particularly Russia, is also in question. Libya and Nigeria will be exempt from participation. Markets will need to see agreement on Wednesday, and positive signs of implementation beyond that, to be convinced that the supply overhang will finally abate.